Jon Najarian Just Alerted Us to Enormous Call Buying in These 3 Names

Jon Najarian was on CNBC Tuesday to talk about Unusual Options Activity that he spotted in Snapchat, Marathon Petroleum, and CVS today.

Snap ($SNAP)

Snapchat was up to bat first, “I do see people stepping in and buying in a big way.”, Jon remarked.

Jon noted that $SNAP had been down 33% over the past week at the time of publication.

“They’re giving themselves time for a rebound. They bought 18,500 of the June calls at the $60 strike with the stock trading at about $56 dollars.”

Though this was a huge trade, Jon added his own spin, “I still prefer buying at-the-money, and I hope to continue to write calls against that position as the stock recovers.”

Marathon Petroleum ($MPC)

Jon also noticed massive upside call buying in the energy name Marathon Petroleum.

“Take a look at MPC, that’s the opposite story – it just keeps going higher. They bought the December $72.50 calls with the stock at $68 bucks. They bought 20,000! That’s a 2 million share equivalent.” Jon exclaimed.

Jon is long these calls, and gave viewers full disclosure on how long he plans to hold, “I’ll hold that one probably a full month, maybe a little longer because I’m looking for energy to keep trading higher.”

CVS Health Corp ($CVS)

Lastly, in his final trade, Jon spoke about CVS. “I bought the $87.50 calls that expire Friday.” This was a reaction to the immense call buying that has taken place at the $90 and $95 strikes. “I like this one going into the end of the week,” Jon said, with regard to how long he plans to hold the position.

$SNAP reported an earnings miss last week. $MPC is expected to report earnings on November 2nd. $CVS is expected to report earnings the following day, November 3rd.

Interested in learning how you can use the power of unusual options activity to conquer the market? Click here to download our Insider’s Guide to Trading UOA.